Recherche

BONTAN OBTAINS TEMPORARY INUNCTION TO HALT SHALDIELI TRANSACTION

TORONTO, Jan. 5 /CNW/ - Bontan Corporation Inc. (OTCBB: BNTNF)
("Bontan") reports that today, in response to a petition filed by
Bontan, the Economic Division of the Tel-Aviv Jaffa District Court,
issued a temporary injunction enjoining the shareholders' meeting of
Shaldieli Ltd., an Israeli shell public company ("Shaldieli"),
originally scheduled for January 17. The meeting was called to approve
a transaction in which the 50% interest in IPC Oil and Gas (Israel)
Limited Partnership ("IPC Israel") owned by Bontan's 76.79%-owned
Cayman Islands subsidiary, Israel Petroleum Company, Limited ("IPC
Cayman"), would be transferred to Shaldieli and Shaldieli would issue
90% of its common equity to IPC Cayman. Pending a hearing by the
court, neither the meeting nor the proposed transaction may proceed.

IPC Israel is the registered owner with the Israel Petroleum
Commissioner of a 13.609% working interest (the "Working Interest") in
the "Myra" and "Sara" Israeli government-issued licenses (the
"Licenses") to conduct marine oil and gas exploration in an
approximately 310 square mile area of the Levantine Basin, about 40 km
off the coast of Israel (the "Offshore Israel Project").

As previously reported, Bontan, as the majority owner of IPC Cayman,
believes that the Shaldieli transaction is subject to its approval.
Bontan has never given this approval and, in fact, has adopted a
resolution voting its shares in IPC Cayman against proceeding with the
transaction.

Kam Shah, Bontan's Chief Executive Officer, commented, "We are pleased
that an Israeli court has granted a temporary injunction which prevents
the Shaldieli transaction from proceeding and protects Bontan's rights.
Of course, we cannot assure that, after further hearings, the court
will make its temporary order permanent or that we will otherwise
resolve our issues with Shaldieli and ITC."

Additional Information About the Offshore Israel Project

The rights in the Licenses for the Offshore Israel Project are held by a
group consisting of IPC Israel, Emanuelle Energy Ltd, Modiin Energy
Limited Partnership, Emanuelle Energy Oil and Gas Limited Partnership
and other entities including the operator, GeoGlobal Resources (India)
Inc. Bontan's indirect share of the Working Interest in the Licenses
is 5.23%.

About Bontan Corporation Inc.:

Bontan Corporation Inc. is an oil and gas exploration company that
operates and invests in exploration prospects. Through its
subsidiaries, Bontan seeks highly visible opportunities in countries
around the globe with a history of natural resource production that
offer exciting and attractive propositions. Bontan seeks to minimize
risk by bringing in either joint venture, carried or working interest
partners, depending on the size and scale of the project.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning
of the U.S. federal and Canadian securities laws. Any such statements
reflect Bontan's current views and assumptions about future events and
financial performance. Bontan cannot assure that future events or
performance will occur. Important risks and factors that could cause
actual results or events to differ materially from those indicated in
our forward-looking statements, include, but are not limited to: the
effect of economic and political developments in Israel and in the
Mideast; the reliance on the working interest owners, as well as
third-party consultants and contractors, to develop the Offshore Israel
Project; the ability of IPC Cayman to raise sufficient capital to
demonstrate to the Israeli Ministry of Natural Infrastructures adequate
financial capability and to satisfy its obligations for the costs of
drilling and development; the risk that the final interpretation of the
seismic and other data may show or suggest, or that drilling may
ultimately demonstrate, that either or both of the Licenses contain no,
or noncommercial amounts of, hydrocarbons; the volatility in commodity
prices for crude oil and natural gas; the presence or recoverability of
estimated reserves; the potential unreliability or other effects of
geological and geophysical analysis and interpretation; exploration and
development, drilling and operating risks; competition for development
of the Offshore Israel Project; environmental risks; government
regulation or other action, including the potential change in tax and
royalty provisions under active consideration by the Israeli
government; potential disruption from terrorist activities or warfare
in the region or at the Offshore Israel Project site; general economic
conditions; limited market available in Israel for oil and gas that may
be found in commercial quantities; other risks generally associated
with the exploration and development of international offshore drilling
projects in several thousand feet of water; and other risks identified
by the press releases and securities filings of the other working
interest owners in Israel and other jurisdictions in which such
releases and filings are made. If the Israeli court lifts its temporary
restraining order, Bontan cannot assure that ITC will not attempt to
consummate the Shaldieli transaction in contravention of agreements
with Bontan and Bontan's vote against approving or proceeding with the
transaction. Bontan's engagement of additional law firms will entail
the expenditure of significant funds and may not successfully protect
Bontan's indirect share of the Working Interest in the Offshore Israel
Project as Bontan's management intends. Bontan assumes no obligation
and expressly disclaims any duty to update the information in this News
Release.

SOURCE Bontan Corporation Inc.

For further information:

Kam Shah, President and Chief Executive Officer of Bontan, at (416) 929-1806